Friday, February 3, 2017

Changes in the regulation for the banking lead gains on Wall Street – Journal-of-Business – Portugal

The u.s. indices closed the week on a high, excited by the jobs data and by the decision of Donald Trump to reverse the rules of the Obama administration to the financial sector.

The industrial index Dow Jones rose by 0,94% to 20.071,46 points, while the technological Nasdaq composite gained or 0.54% to 5.666,76 points. Already the S&P500 gained was 0.73%, to 2.297,42 points, in what was the third session consecutive rises in this index. In the first nine months of the week the S&P 500 managed slight gains, to the next of 0.1%.

Before the opening of the market, it was revealed that the unemployment rate in the United States rose 4.7% in December to 4.8% in January, but the job creation was the highest the past four months. The largest economy in the world has created 227 thousand jobs in January, a value above the estimates of economists surveyed by Reuters which pointed to 175 thousand.

This Friday, the White House further revealed that, after a meeting with a group of entrepreneurs, that includes the CEO of Blackstone, Trump will sign two executive orders to relieve financial regulation.

In the first place, it will hang the call rule as a trust – a rule that requires that the companies which manage savings for retirement to work for the best interest of their clients – that will come into force in April. The Obama administration argued that this rule would protect millions of retirees from being directed to investments that are inappropriate, involving great risks or costs, that generate more profits to the brokers.

in addition, the president of the United States will order a review of the laws of Dodd-Frank, enacted in response to the financial crisis of 2008.

On Monday, Trump claimed that this legislation issued the “entrepreneurial spirit” of the country, and access to credit. “The regulation was really horrible for large companies, but it has been worse still for the small businesses,” said the president. “Dodd-Frank is a disaster.”

The decision of Trump was well-received by the financial sector, which led the gains on Wall Street. Goldman Sachs has valued 4,57%, JPMorgan rose to 3.06%, and American Express advanced 2%. Visa gained 4.59 percent, also benefiting from the positive results presented.

To limit the gains between the technological gave 3,54% after have advanced with projections of results that didn’t please the analysts. To the contrary, Amgen soared 4.7 percent after having announced the above results the expected.


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